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April 20, 2007
Vouchers Under Attack
Today NPR had a short report on efforts by Ohio Governor to restrict school vouchers for students in low preforming schools.
Here's a succinct summary of the audio:
Ohio's new governor, Democrat Ted Strickland, wants to reduce the use of school vouchers. Teachers' unions support him. Many parents and students do not.
Posted by Peter Mork at 11:42 AM | Comments | TrackBack
April 17, 2007
Price Controls Working Wonders in Venezuela
From the Economist:
Who controls the food supply and why a fertile and oil-rich country should have problems getting food to its 27m people are questions that pit the leftist government of Hugo Chávez against much of the private sector. Venezuela has one of the world's highest inflation rates (see chart). Food prices are rising even faster than the overall index. That is despite—or because of—the fact that food, medicines and basic services have been subject to price controls since 2003. Meat, milk, black beans and sugar are among many products that, from time to time, disappear from the shelves—even those of Mercal, the government-run supermarket chain. Often, though, these goods can be found at much higher prices in the hands of street traders.
The government has a simple answer to the conundrum. “It's part of the curse of capitalism,” according to Mr Chávez. In February he declared war on “hoarders and speculators”, issuing a decree mandating jail sentences of up to six years for anyone interfering with food supplies. The government promptly seized a slaughterhouse and a cold-store.
Many businessmen and shopkeepers have a different view. They complain that controlled prices are set so low that they are obliged to sell at a loss. If they don't, they risk fines, temporary closure, expropriation or even imprisonment. In late March, for instance, the government temporarily closed 17 butchers' shops it accused of breaking price regulations. Mr Chávez has said that if he has to take over the entire food industry he will, although many Venezuelans doubt the government would be capable of running it.
Posted by Peter Mork at 12:36 PM | Comments | TrackBack
April 2, 2007
Shrimp Protectionism Revisited
Today the WSJ had an excellent article on how U.S. shrimpers are essentially extorting money from foreign competitors they are unable to compete with on price. Not only are tariffs being levied on shrimp imports, but additionally, foreign competitors are making direct cash payments to the Southern Shrimp Alliance to avoid further lawsuits. Talk about a racket.
What’s interesting is the justification.
John Williams, head of the Southern Shrimp Alliance, explained that when imports from places like Thailand and Vietnam suppressed prices he “had trouble making debt payments, especially on his boats,” he had to “cancel his medical insurance,” and was forced to return “his wife’s Chevy Suburban to the dealer.” To this day he still has tens of thousands in credit card debt, which is offered as justification for a further increase in tariffs his organization applied for in February.
Not mentioned is the flip side of this coin. As I reported last year from Vietnam, these tariffs mean people like Hien Le are being thrown out of work. Like John Williams, Hien faces economic insecurity as well. He had hoped to buy, not a Suburban, but materials to build a simple brick home for his family with potential earnings from a small shrimp farm. That dream ended when U.S. tariffs put him out of a job and made hjs small plot of land worthless. His wife and two daughters are pictured below.
Hien Le doesn’t want tariffs on American shrimp, nor is he extorting additional cash payments from American shrimpers. He just wants to be able to sell his shrimp to willing American buyers. Should we deny him that right simply because he was born in Vietnam instead of Florida?